Capacity-building

Under the Convention and its KP, capacity-building is about enhancing the abilityof individuals, organizations
and institutions in developing countries and in countries with economies in transition to identify, plan and
implement ways to mitigate and adapt to climate change.

The work on capacity-building is guided by the two frameworks on capacity-building and the Durban Forum on
capacity-building. Given that Parties identified education, training and public awareness as a priority area for
capacity-building, arrangements in support of the implementation of Article 6 of the Convention are also listed
in this section.

The framework for capacity-building in developing countries

The framework for capacity-building in developing countries was adopted in 2001. It provides a set of principles
for and approaches to capacity-building, defines a list of priority areas for action and provides guidance to the
Global Environment Facility, bilateral and multilateral agencies and other intergovernmental organizations and
institutions on supporting the implementation of this framework.

The framework for capacity-building in countries with economies in transition

The framework for capacity-building in countries with economies in transition was adopted in 2001. It identifies
guiding principles, approaches and priority areas for capacity-building and includes guidance on financial and
technical support to be provided by Annex II Parties, the Global Environment Facility, bilateral and multilateral
agencies, and other intergovernmental organizations and institutions in implementing this framework.

The Durban Forum on capacity-building

The Durban Forum on capacity-building was established in 2011. It is an annual platform that brings together
Parties, bodies established under the Convention and its Kyoto Protocol and stakeholders involved in building the
capacity of developing countries to mitigate and adapt to climate change with the aim of further enhancing the
monitoring and review of the effectiveness of capacity-building; exchanging experiences, good practices and
lessons learned; providing an overview of capacity-building elements in the work of bodies established under the
Convention and its Kyoto Protocol; and providing inputs to the review of the framework for capacity-building in developing
countries.

The Doha work programme on Article 6 of the Convention

The eight-year Doha work programme on Article 6 of the Convention was adopted in 2012 and recommends concrete
actions in relation to climate change education, training, public awareness, public participation, public access
to information and international cooperation. Parties are encouraged to report on the implementation of the work
programme through their national communications, and to share information on the matter through the UNFCCC
climate change information network clearinghouse CC:iNet and social media platforms.

The Dialogue on Article 6 of the Convention

The annual Dialogue on Article 6 of the Convention was established in 2012 as a space for Parties, bodies
established under the Convention, experts, practitioners and stakeholders to regularly share experiences and
exchange ideas, best practices and lessons learned regarding the implementation of climate change education,
training, public awareness, public participation, public access to information and international cooperation.

The Dialogue has two focal areas, the consideration of which alternates on an annual basis, with the first focal
area consisting of education and training, and the second encompassing public awareness, participation and access
to information. International cooperation is a cross-cutting theme of both areas. The first Dialogue was held in
2013 and focused on the first focal area. The second Dialogue will be held in 2014 with a focus on public
awareness, public participation, public access to information and international cooperation on these matters.

Finance

The Convention and its Kyoto Protocol contain provisions to promote cooperation and to ensure that the
implementation of the Convention and the actions on climate change by developing countries are supported and
enabled through the provision of resources that shall be provided by developed country Parties.

In the Cancun Agreements, the COP took major steps to strengthen the arrangements to facilitate the scaling up
and mobilization of finance, technology and capacity building to assist developing countries to enhance action on
mitigation and adaptation. The arrangements under the Convention for finance, technology and capacity building
have been further strengthened during the period from 2011-2013. Each of the arrangements and their state of
implementation are described in this section.

The Kyoto Protocol

The Kyoto Protocol specifies a quantified emission limitation and reduction commitment for each developed country
Party as well as related rules for accounting. Agreed rules are applicable to the assigned amounts of Parties;
land-use related activities; and the use of flexibility mechanisms (emissions trading (ET), the clean development
mechanism (CDM) and joint implementation (JI).

Two commitment periods have been agreed so far. For the first commitment period, 38 Parties agreed to reduce
their overall emissions by at least 5 per cent below 1990 levels between 2008 and 2012. For the second commitment
period, the same number of Parties has agreed, by decision 1/CMP.8 (Doha Amendment to the Kyoto Protocol), to
reduce their emissions by at least 18 per cent below 1990 levels between 2013 and 2020.

For its second commitment period, the Kyoto Protocol includes provisions that will allow each Annex I Party to
revisit its QELRC at the latest by 2014. The operation of such process is described in decision 1/CMP.8,
paragraphs 7-10.

Information on the status of ratification of the Doha Amendment to the Kyoto Protocol is available on the United
Nations Treaty
Collection website:

Nationally appropriate mitigation commitments or actions of developed countries

Following negotiations under the Bali Action Plan (decision 1/CP.13), developed country Parties agreed, by
decision 1/CP.16, to undertake nationally appropriate mitigation commitments or actions. These commitments or
actions take the form of economy-wide emission reduction targets with a timeframe of 2020. Parties have also
communicated information on the context, assumptions and applicable conditions.

With a view to the process of clarifying these targets, the COP established a work programme under the SBSTA.
This work programme aims to identify common elements for measuring progress towards the achievement of the
targets, and ensure comparability of efforts among developed country Parties. The SBSTA will report to COP 19 on
progress and to COP 20 on the outcome of the work programme.

Nationally appropriate mitigation actions of developing countries

Developing country Parties have agreed, in decision 1/CP.16, to undertake NAMAs in the context of sustainable
development, supported and enabled by technology, financing and capacity-building, aimed at achieving a deviation
in emissions relative to 'business as usual' in 2020.

So far, 57 developing country Parties, as well as one group of Parties, have communicated such NAMAs to the COP,
most with a timeframe of 2020. NAMAs are characterized by their diversity as they include quantified emission
reductions below 'business as usual', intensity targets, sectoral policies and programmes, investment
projects, and others. Some developing countries have also provided information on context, conditions and need
for finance, technology and capacity building.

With a view to further the understanding of the diversity of NAMAs, the COP established a work programme under
the SBI. This work programme aims at facilitating the preparation and implementation of NAMAs by addressing
additional information on these actions themselves (including underlying assumptions and methodologies, sectors
and gases covered, global warming potential values, and estimated mitigation outcomes, needs for financial,
technology and capacity-building support; and the extent of matching actions with support by means of the NAMA
registry. The SBI will report to COP 19 on progress and to COP 20 on the outcome of the work programme.

Reducing emissions from deforestation and forest degradation and the role of conservation, sustainable management
of forests and enhancement of forest carbon stocks in developing countries

The COP has encouraged developing country Parties to contribute to mitigation actions in the forest sector
through reducing emissions from deforestation; reducing emissions from forest degradation; conservation of forest
carbon stocks; sustainable management of forests; and enhancement of forest carbon stocks (referred to as
REDD-plus).

Targeted streams of work to address REDD-plus have been established by the COP, with focus on, inter alia,
results-based finance and enhanced support, methodological aspects, and the operation of a REDD Web Platform to
make available information relating to support efforts, capacity building, demonstration activities and
mobilization of resources. The SBSTA is currently considering methodological guidance for REDD-plus with a view
to presenting a draft decision to COP 19, and the SBI and SBSTA are jointly considering the coordination of
support for activities in the forest sector by developing countries with a view to making recommendations to COP
19.

Registry to record nationally appropriate mitigation actions

The COP has set up a registry to record NAMAs seeking international support and to facilitate the matching of
finance, technology and capacity-building support for those actions. As at 1 September 2013, the NAMA registry
contained 40 NAMAs submitted by 10 developing country Parties, and four entries with information on support for
NAMAs submitted by one developed country Party and one international organization.

The web-based NAMA registry was deployed in October 2013. More information is available at http://unfccc.int/7476.

Forum on response measures

The Convention recognizes that Parties shall take into full consideration, in the implementation of their
commitments, the specific needs and concerns of developing country Parties arising from the impact of the
implementation of response measures. In response to a mandate provided by COP 16, a forum was established jointly
by the two subsidiary bodies. In addition, the COP adopted a work programme to improve the understanding of the
impact of the implementation of response measures. The forum has been implementing each of the eight areas of the
work programme, through a series of in-forum workshops, an in-forum discussion by Parties and an in-forum expert
meeting. The mandates for those arrangements will be considered at COP 19.

Financial mechanism of the Convention

The financial mechanism is a mechanism for the provision of financial resources on a grant or concessional basis,
including for the transfer of technology, to developing country Parties to support the implementation of the
Convention. Its operations are currently entrusted to two operating entities: the Green Climate Fund (GCF) and
the Global Environment Facility (GEF). The financial mechanism also supports developing country Parties in the
implementation of the Kyoto Protocol in accordance with Article 11 of the Kyoto Protocol.

According to Article 11, paragraph 5 of the Convention, developed country Parties may also provide and developing
country Parties avail themselves of financial resources related to the implementation of the Convention through
bilateral, regional and other multilateral channels.

Additionally, in accordance to Article 11, paragraph 3 of the Kyoto Protocol, developed country Parties and other
developing country Parties in Annex II of the Convention may also provide, and developing country Parties avail
themselves of, financial resources for the implementation of Article 10 of the Kyoto Protocol, through bilateral,
regional and other multilateral channels.

The operating entities report annually to the COP, on the basis of which the COP provides guidance to the
operating entities, including on matters related to policies, programme priorities and eligibility criteria. The
COP reviews the financial mechanism every four years.

The finance portal of the UNFCCC secretariat is a gateway to information on activities funded in developing
countries to implement the Convention. It consists of the following three modules: National Communications,
fast-start finance, and funds managed by the GEF, and also provides information on Adaptation Fund project data.

Green Climate Fund

The purpose of the Green Climate Fund (GCF) is to make significant and ambitious contributions to global efforts
towards achieving the goals set by the international community to combat climate change and, in the context of
sustainable development, to promote the paradigm shift towards low-emission and climate-resilient development
pathways. It will play a key role in channelling new, additional, adequate and predictable financial resources to
developing countries and will catalyse climate finance, both public and private, and at the international and
national levels. A significant share of new multilateral funding for adaptation should flow through the GCF. As
an operating entity of the financial mechanism, the GCF supports projects, programmes, policies and other
activities in developing country Parties using thematic funding windows.

The GCF is governed by a 24-member Board chaired by two Co-Chairs. Arrangements between the COP and the GCF to
ensure that the Fund is accountable to and functions under the guidance of the COP were agreed on by COP 19. The
World Bank is serving as interim trustee for the Fund, subject to a review three years after the
operationalization of the Fund.

The Board of the GCF provides annual reports to the COP for its consideration and in order to receive further
guidance. The COP provided initial guidance to the GCF at COP 19.

Global Environment Facility

The Global Environment Facility (GEF) is an independently operating financial organization and is one of the
operating entities entrusted by the COP with the operation of the financial mechanism in order to finance climate
change activities.

By decision 12/CP.2, the COP adopted a MOU between the COP and the GEF Council, and, by decision 12/CP.3,
approved an annex to the MOU on the determination of funding necessary and available for the implementation of
the Convention. The World Bank serves as the GEF Trustee.

The main governing body of the GEF is a 32-member Council, which meets twice a year. The GEF reports to the COP
annually. Based on the annual reports of the GEF and submissions by Parties, the COP provides guidance to the GEF
on policies, programme priorities and eligibility criteria.

Special Climate Change Fund

The Special Climate Change Fund (SCCF) provides finance to projects on adaptation, technology transfer and
capacity building, energy, transport, industry, agriculture, forestry and waste management, and economic
diversification. It has two active funding windows: one for adaptation (SCCF-A); and one for technology transfer
(SCCF-B).

The SCCF was established by decision 7/CP.7 and is operated by the GEF under the guidance of the COP. The GEF
Council meets twice per year as the Council for the SCCF, which is chaired by the Chief Executive Officer of the
GEF and the Chair of the GEF Council.

Least Developed Countries Fund

The LDCF was established by decision 7/CP.7 to support a work programme to assist the LDCs to carry out, inter
alia, the preparation and implementation of their NAPAs. The LDCF supports all activities contained in the LDC
work programme. It is the only fund mandated to finance NAPAs and has also mobilized resources to ensure the
implementation of other elements of the LDC work programme.

The GEF has been entrusted to operate the LDCF under the guidance of the COP. The GEF Council meets twice per
year as the Council for the LDCF, which is chaired by the Chief Executive Officer of the GEF and the Chair of the
GEF Council.

The Adaptation Fund under the Kyoto Protocol

The Adaptation Fund was established to finance adaptation projects and programmes in developing country Parties
to the Kyoto Protocol that are particularly vulnerable to the adverse effects of climate change. Funding for the
Adaptation Fund is based on the share of proceeds of emission reductions achieved by CDM projects and other
sources, including voluntary contributions, including from Annex I Parties that have ratified the Kyoto Protocol.

The Adaptation Fund was established by decisions 10/CP.7, and decision 1/CMP.3 established its institutional
arrangements. It is operated by a 16-member Board, with a Chair and a Vice-Chair under the authority and guidance
of the CMP. The World Bank serves as the trustee for the Fund, and the GEF as the secretariat of its Board, both
on an interim basis. The Board meets three to four times per year and reports to the CMP annually. The Adaptation
Fund is reviewed periodically.

Standing Committee on Finance

The Standing Committee on Finance (SCF) was established by decision 1/CP.16 to assist the COP in exercising its
functions in relation to the financial mechanism in terms of improving coherence and coordination in the delivery
of climate change financing, the rationalization of the financial mechanism, mobilization of financial resources,
and the measurement, reporting and verification of the support provided to developing country Parties.

In the context of its forum, the SCF also engages in extensive outreach activities with external stakeholders
involved in climate finance. The SCF has developed a work programme for 2013-2015. The COP will review the
functions of the SCF in 2015.

Long-term finance

The work programme on long-term finance, launched at COP 17 in 2011 and extended at COP 18, concluded its work at
COP 19 in Warsaw.

Building on this outcome, COP 19 set out milestones on long-term climate finance for the period 2014-2020.

These include:

Biennial submissions by developed country Parties on their updated strategies and approaches for scaling up
climate finance from 2014 to 2020, including any available information on quantitative and qualitative elements
of a pathway;

(a) Information to increase clarity on the expected levels of climate finance mobilized from different
sources;
(b) Information on their policies, programmes and priorities;
(c) Information on actions and plans to mobilize additional finance;
(d) Information on how Parties are ensuring the balance between adaptation and mitigation, in particular the
needs of developing countries that are particularly vulnerable to the adverse effects of climate change;
(e) Information on steps taken to enhance their enabling environments, following on from the report of the
co-chairs of the extended work programme on long-term finance;

In-session workshops on, inter alia, strategies and approaches for scaling up climate finance, cooperation on
enhanced enabling environments and support for readiness activities, and on needs for support to developing
countries;

Biennial high-level ministerial dialogue on climate finance starting in 2014 and ending in 2020 and informed,
inter alia, by the workshops and the submissions referred to above. A summary of the deliberations of the
dialogue will be issued by the Presidency of the Conference of the Parties.

Technology

Promoting the effective development and transfer of environmentally sound technologies is critical to enabling
developing countries to pursue their objectives for sustainable development in a climate-friendly manner. In
Article 4, paragraphs 1(c) and 5, of the Convention, developed country Parties and Parties included in Annex II
to the Convention (Annex II Parties) are urged to take all practicable steps to promote, facilitate and finance,
as appropriate, the transfer of, or access to, environmentally sound technologies and know-how to other Parties,
particularly to developing countries, to enable them to implement the provisions of the Convention.

In order to enable such practical steps, the COP established a set of arrangements to facilitate technology
development and transfer.

Technology Mechanism

The Technology Mechanism was established by decision 1/CP.16 with the objective of enhancing action on the
development and transfer of technology. This was undertaken to support action on mitigation and adaptation in
order to achieve the full implementation of the Convention. The Technology Mechanism has two components: the
Technology Executive Committee (TEC) and the Climate Technology Centre and Network (CTCN).

The Technology Mechanism is now fully operational and its components are focused and ready to service Parties in
the role that Parties envisaged for them; in this way aiming to ensure that the Technology Mechanism achieves its
overall objective.

Technology Executive Committee

The Technology Executive Committee (TEC) is the policy component of the Technology Mechanism and is mandated,
together with the Climate Technology Centre and Network (CTCN), to facilitate the effective implementation of the
Technology Mechanism, under the guidance of the COP.

The TEC has a series of mandated functions and primarily serves Parties by providing recommendations on
technology development and transfer issues. The TEC also serves to inform Parties and stakeholders by
disseminating information via policy briefs, technical papers, a dedicated website (ttclear.unfccc.int) and a variety of events. In addition, the TEC links with
other arrangements under the Convention (particularly the CTCN) to ensure coherence on technology transfer
matters. Finally, it engages with relevant stakeholders outside of the Convention to promote coherence and
coordination across technology activities.

Climate Technology Centre and Network

The Climate Technology Centre and Network (CTCN) is the implementation component of the Technology Mechanism and
is mandated, together with the Technology Executive Committee (TEC), to facilitate the effective implementation
of the Technology Mechanism, under the guidance of the COP. The CTCN is accountable to and acts under the
guidance of the COP through its Advisory Board.

Primarily, the CTCN will respond to developing country Parties' requests submitted through their national
designated entities (NDEs) to facilitate the preparation and implementation of technology projects and
strategies. Both the CTCN and the TEC have encouraged more Parties to nominate their NDEs.

Poznan strategic programme on technology transfer

At COP 13, Parties requested the Global Environment Facility (GEF) to elaborate a strategic programme to scale up
the level of investment for technology transfer. This was undertaken with the aim of helping developing countries
to address their needs for environmentally sound technologies. At COP 14, Parties welcomed the establishment of
this programme, titled the Poznan strategic programme on technology transfer.

The Poznan strategic programme on technology transfer is operated by the GEF and provides support for: technology
needs assessments; technology transfer pilot projects; and disseminating experience of the GEF and successfully
demonstrated environmentally sound technologies. For the long-term implementation of the Poznan strategic
programme, the GEF fulfils its mandate by:

Economic instruments currently in operation

The Clean Development Mechanism

The CDM provides for the registration of projects that reduce or remove emissions in non-Annex I Parties and the
issuance of credits (known as certified emission reductions (CERs)) corresponding to the reductions or removals
achieved by such projects. To date, over 7,300 projects have been registered and almost 1.4 billion units have
been issued. The CDM was estimated in 2012 to have channelled a cumulative total of USD 215 billion to non-Annex
I Parties.

The CDM was established by Article 12 of the Kyoto Protocol. Its purpose is to assist non-Annex I Parties in
achieving sustainable development and in contributing to the ultimate objective of the Convention, and to assist
Annex I Parties in achieving compliance with their mitigation commitments under the Kyoto Protocol.

The CDM is supervised by an Executive Board under the authority and guidance of the CMP. It has a support
structure that includes various technical panels and working groups namely the Accreditation Panel, the
Afforestation and Reforestation Working Group. the Carbon Dioxide Capture and Storage Working Group, the
Methodologies Panel and the Small-Scale Working Group.

Of note is the establishment of a registry to ensure the accurate accounting of the issuance, holding, transfer
and acquisition of CERs. Currently, non-Annex I Parties that host CDM projects (as well as entities authorized by
them to participate in the projects) are eligible to open accounts in the CDM registry to hold CERs.

The CDM registry also contains an account that allows for the voluntary cancellation of CERs. Under the
accounting rules of the Kyoto Protocol, any CERs sent to that account are removed from the circulation of units
that may be used to meet mitigation commitments under the Kyoto Protocol, thereby providing a net emissions
benefit.
More information is available at: http://cdm.unfccc.int.

Joint Implementation

JI provides for the identification of projects that reduce or remove emissions in Annex I Parties with
commitments under the Kyoto Protocol and the issuance of credits (known as emission reduction units (ERUs))
corresponding to the reductions or removals achieved by such projects. To date, almost 600 projects have been
identified and over 800 million ERUs have been issued.

JI has two tracks. Under track 1, Annex I Parties themselves are responsible for administering the process for
verifying that emission reductions or removals have occurred. Under track 2, this responsibility falls on an
internationally constituted body known as the JI Supervisory Committee (JISC). Approximately 98 per cent of the
ERUs issued to date have been issued under track 1.

JI was established by Article 6 of the Kyoto Protocol and is supervised by the JISC under the authority and
guidance of the CMP.

International Emissions Trading

IET provides for the transfer of units under the Kyoto Protocol between Annex I Parties with mitigation
commitments under the Kyoto Protocol. These units include AAUs, CERs, ERUs or RMUs.

IET was established by Article 17 of the Kyoto Protocol. It was made operational by the COP in decision 18/CP.7
and its guidelines were formally adopted by the CMP in decision 11/CMP.1. Further guidance relating to IET is
provided periodically by the CMP.

International Transaction Log

The international transaction log verifies the validity of transactions, including issuance, transfer and
acquisition between registries, cancellation, retirement, and (where applicable) carry-over, of the various unit
types under the Kyoto Protocol.

ECONOMIC INSTRUMENTS UNDER DEVELOPMENT

New Market-based Mechanism

The new market-based mechanism was defined in decision 2/CP.17 "to enhance the cost-effectiveness of, and to
promote, mitigation actions, bearing in mind different circumstances of developed and developing countries".

The new market-based mechanism is in the process of elaboration, taking into account the seven issues set out in
decision 1/CP.16, paragraph 80. The SBSTA is conducting a work programme to elaborate modalities and procedures
for the new market-based mechanism, with a view to recommending a draft decision to COP 19.

Non-market-based Approaches

Framework for Various Approaches

In decision 2/CP.17, the COP emphasized that mitigation approaches implemented individually or jointly by Parties
must meet standards that deliver real, permanent, additional and verified mitigation outcomes, avoid double
counting of effort, and achieve a net decrease and/or avoidance of emissions, and it invited the consideration of
a framework for such approaches.

This framework is in the process of elaboration. The SBSTA is conducting a work programme to elaborate it, with a
view to recommending a draft decision to COP 19.

The 2013-2015 Review

The 2013–2015 review will assess the adequacy of the long-term global goal of limiting the increase in
global temperature to 2 °C and the overall progress made towards achieving that goal. It will also consider
strengthening the long-term global goal, including to 1.5 °C.

The review was established by decision 1/CP.16. The COP will conduct the review with the assistance of the SBSTA
and the SBI, which have launched a joint contact group for the task. The joint contact group will be supported by
a structured expert dialogue (SED), which will ensure scientific integrity through a focused exchange of views,
information and ideas. The subsidiary bodies will report on their considerations and findings to the COP, which
should provide guidance. The SED co-facilitators will report to COP 19 and COP 20.

The information sources to be considered in the review include IPCC reports and information from Parties as well
as from United Nations and regional agencies. Parties can provide inputs and information to directly contribute
to the review. The SED will consider the inputs at workshops and expert meetings, and the COP will identify
appropriate action on the basis of the outcomes of the review in 2015.

The first review started in 2013 and will be concluded by 2015. Subsequent reviews will take place following the
adoption of an IPCC assessment report or at least every seven years.

Cancun Adaptation Framework

The CAF was established by decision 1/CP.16 to enhance action on adaptation, including through international
cooperation and the coherent consideration of matters relating to adaptation under the Convention. The key
provisions and activities defined by the CAF cover the following broad aspects of adaptation: implementation,
institutions, support, principles and engagement.

To enhance implementation, all Parties are invited to plan, prioritize and implement adaptation actions. Two new
workstreams were initiated to this end: the National Adaptation Plan (NAP) process and the work programme on loss
and damage.

To strengthen adaptation institutions at all levels, the Adaptation Committee was established to promote the
implementation of enhanced action on adaptation in a coherent manner under the Convention. The CAF also calls on
strengthening of national and regional institutions.

To enhance support for adaptation, developed country Parties are requested to provide developing country Parties
with long-term, scaled-up, predictable, new and additional finance, technology and capacity building. The CAF
also confirms a number of adaptation principles and actively promotes the engagement of stakeholders in
undertaking and supporting enhanced action on adaptation at all levels.

The activities and arrangements under the CAF link to other adaptation work-streams, in particular through the
work of the Adaptation Committee. The provisions on support are being operationalized through work on finance,
technology and capacity-building.

National Adaptation Plans

The NAP process will enable Parties to formulate and implement NAPs as a means of identifying medium- and
long-term adaptation needs and developing and implementing strategies to address them.

Following the initiation of the NAP process by the CAF, the COP adopted initial guidelines and modalities for
LDCs to formulate and implement NAPs and invited non-LDCs to employ these guidelines and modalities. It requested
the Least Developed Countries Expert Group (LEG) to provide technical guidance and support to the NAP process and
to develop relevant technical guidelines. At the same time, it requested the Adaptation Committee to consider
modalities and guidelines for supporting non-LDCs to plan, prioritize and implement their national adaptation
planning measures (decision 5/CP.17).
More information is available at: http://unfccc.int/6057.

Warsaw International Mechanism for Loss and Damage

The Warsaw international mechanism for loss and damage was established by decision 2/CP.19, under the Cancun
Adaptation Framework, to address loss and damage associated with impacts of climate change, including extreme
events and slow onset events, in developing countries that are particularly vulnerable to the adverse effects of
climate change.

Executive Committee of the Warsaw International Mechanism for Loss and Damage

The Executive Committee of the Warsaw international mechanism was established by decision 2/CP.19 to guide the
implementation of the functions of the Warsaw international mechanism for loss and damage. The Executive
Committee functions under the guidance of, and is accountable to, the Conference of the Parties.

The Adaptation Committee

The Adaptation Committee is the overall advisory body to the COP on adaptation to the adverse effects of climate
change. Its objective is to promote the implementation of enhanced action on adaptation in a coherent manner
under the Convention.

The COP channels requests from Parties to the Adaptation Committee. The scope of its work is defined by the five
functions defined in decision 1/CP.16:

Providing technical support and guidance to Parties;

Strengthening, consolidating and enhancing the sharing of information, knowledge, experience and good
practices;

Promoting synergy and strengthening engagement with national, regional and international organizations,
centres and networks;

Providing information and recommendations for consideration by the COP;

Considering information communicated by Parties on the monitoring and review of adaptation actions,
support, possible needs and gaps, and other relevant information.

National Adaptation Programmes of Action

NAPAs provide means for LDCs to identify and implement urgent and immediate needs with respect to the adverse
effects of climate change.

NAPAs were established by decision 5/CP.7, with its guidelines and funding arrangements defined in decisions
27/CP.7 and 28/CP.7. In subsequent decisions the COP mandated the LEG to support the NAPA process (decisions
29/CP.7, 4/CP.11 and 6/CP.16). The GEF defined guidelines for accessing the Least Developed Countries Fund (LDCF)
for the preparation of NAPAs in 2002 and for the implementation of NAPAs in 2006 (document GEF/C.28/18).

Nairobi Work Programme

The NWP was established by decision 2/CP.11 in order to assist all Parties to: (a) improve their understanding
and assessment of impacts, vulnerability and adaptation to climate change; and (b) make informed decisions on
practical adaptation actions and measures. Its work has been defined around nine work areas.

The NWP plays a key role in engaging a wide spectrum of stakeholders and catalysing targeted actions ranging from
raising awareness on the need for adaptation, developing global public good such as climate and weather indices,
to organization of thematic training sessions and learning events. It operates under the SBSTA and is presided
over by two Co-Chairs. The SBSTA issues reports on the work of the NWP to the COP. The NWP provides an interface
for interaction between Parties, organizations, and experts, through which needs and demands of Parties and
activities and expertise supplied by organizations are identified and communicated. The NWP has a network of 220
partner organizations, extensive knowledge sharing and learning infrastructure, consisting of a database of
pledges on targeted actions (currently over 170), and modalities. Technical workshops and expert meetings have
assisted Parties in identifying gaps and needs, as well as understanding good practices related with the
adaptation process.

The implementation of NAPs is also dependent upon access to information and knowledge on adaptation and therefore
benefits from the work of the NWP.

The Least Developed Countries Expert Group

The LEG supports the implementation of Article 4, paragraph 9, of the Convention, addressing the specific needs
and special circumstances of the LDCs.

It was mandated through a series of decisions (decisions 29/CP.7, 4/CP.11, 8/CP.13, 6/CP.16, and 5/CP.17.) to
provide technical support and advice to the LDCs on NAPAs and the LDC work programme, and to provide technical
guidance and support to the NAP process.

The LEG develops a two-year rolling work programme. Its work is structured around seven objectives:

Providing technical guidance and advice on the NAP process;

Supporting implementation of NAPAs;

Supporting and guiding the integration of gender and other considerations regarding vulnerable communities
within the LDCs;

Supporting the implementation of the LDC work programme;

Providing support to LDC Parties for the preparation, revision and updating of their NAPAs;

Conducting outreach in relation to the NAPA process and the work of the LEG;

Supporting the coherence and synergy of adaptation work under the Convention.

The Least Developed Countries Work Programme

The LDC work programme was established by decision 5/CP.7 to build and strengthen the capacity of LDCs to address
adverse effects of climate change given their specific needs and special circumstances.

The activities under the work programme are structured around six elements: (a) preparation of guiding materials;
(b) training workshops; (c) monitoring of progress; (d) outreach through various channels; (e) LEG/LDC side
events; and (f) the mobilization of the GEF and its agencies and other organizations to support the LDCs (see
decision 5/CP.7).

Oversight and decision-making

The Convention has established a variety of arrangements to govern, coordinate and provide for oversight of the
arrangements described in this document. The oversight bodies take decisions, provide regular guidance, and keep
the arrangements under regular review in order to enhance and ensure their effectiveness and efficiency.

Conference of the Parties

The COP, established by Article 7 of the Convention, is the supreme body and highest decision-making organ of the
Convention. It reviews the implementation of the Convention and any related legal instruments, and takes
decisions to promote the effective implementation of the Convention.

A total of 195 Parties, as well as observer States and observer organizations are represented at sessions of the
COP. The work is presided over by the President of the COP and guided by its Bureau. The COP meets once each
year, unless it decides otherwise.

Decisions to promote the implementation of the Convention include the adoption of new protocols, for example the
adoption of the Kyoto Protocol at COP 3, as well as the provision of guidance, requests, invitations and
recommendations to Parties. The COP may also request the subsidiary and other bodies, and invite observer
organizations to undertake work on specific topics, establish new arrangements and establish processes to conduct
negotiations. Apart from decisions, the COP can also adopt conclusions, resolutions and declarations.

Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol

The CMP, established by Article 13, paragraph 1, of the Kyoto Protocol, is the supreme body and highest
decision-making organ of the Kyoto Protocol. It is responsible for reviewing the implementation of the Kyoto
Protocol, and takes decisions to promote the effective implementation of the Protocol.

A total of 192 Parties to the Kyoto Protocol, observer States and observer organizations participate in sessions
of the CMP, which meets annually in conjunction with the COP. The President and Bureau of the CMP guide its work,
and the in-session modus operandi is similar to that of the COP.

Decisions by the CMP to promote the effective implementation of the Kyoto Protocol can include the adoption of
amendments, such as the recent Doha Amendment on the second commitment period of the Kyoto Protocol adopted at
CMP 8. Similar to the COP, the CMP can produce decisions, conclusions, resolutions, and declarations.

Subsidiary Body for Scientific and Technological Advice

The SBSTA was established by Article 9 of the Convention as one of the two permanent subsidiary bodies under the
Convention. It provides information and advice to the COP and its other subsidiary bodies on scientific and
technological matters relating to the Convention and, in accordance with Article 15 of the Kyoto Protocol,
information and advice to the CMP relating to the Kyoto Protocol.

The SBSTA meets twice annually, in May/June and in conjunction with the annual sessions of the COP and the CMP at
the end of the year. The SBSTA meets in a plenary setting, with contact and informal groups established to
conduct work. All Parties, as well as observer States and observer organizations, participate in sessions of the
SBSTA. The Chair of the SBSTA presides over the sessions, supported by the Vice-Chair and the Rapporteur. The
SBSTA reports to the COP and the CMP on its work.

The tasks of the SBSTA include, for example: (a) assessment of the state of scientific knowledge on climate
change and its effects; (b) the scientific assessment of the effects of measures taken in implementing the
Convention; (c) the identification of technologies and know-how and advice on how to promote their development
and/or transfer; (d) the provision of advice on scientific programmes, international cooperation in research and
development and supporting capacity-building in developing countries; and (e) responding to scientific,
technological and methodological questions that the COP and the SBI may put to it (see Article 9, paragraph 2, of
the Convention).

Subsidiary Body for Implementation

The SBI was established by Article 10 of the Convention to advise and assist the COP and, in accordance with
Article 15 of the Kyoto Protocol, to advise and assist the CMP, in the assessment and review of the effective
implementation of the Convention and its Kyoto Protocol. The SBI reports to the COP and CMP on its work.

Its modalities for participation, chairing, meetings, reporting and review are similar to those of the SBSTA.

The tasks of the SBI include, for example: (a) the consideration of Parties' national communications, in
order to assess the overall aggregated effect of the steps taken in the light of the latest scientific
assessments of climate change; (b) consideration of the Annex I Parties' national communications, in
accordance with Article 12, paragraph 2, of the Convention, in order to assist the COP in carrying out the review
of the adequacy of commitments as required by Article 4, paragraph 2(d), of the Convention; (c) the provision of
assistance to the COP in preparing and implementing its decisions, in particular reviewing the financial
mechanism of the Convention, proposing recommendations on the arrangements for the intergovernmental process, and
advising on budgetary and administrative matters.

National communications

Annex I Parties submit national communications every four to five years, on the basis of agreed guidelines. Their
sixth national communications are due on 1 January 2014.

National communications of Annex I Parties contain information on national circumstances and institutional
arrangements, national GHG emissions, policies and measures to mitigate climate change, GHG projections and total
effects of policies and measures, vulnerability and adaptation to climate change, financial resources and
transfer of technology, research and systematic observation, and education, training and public awareness.

Annex I Parties that are also Parties to Kyoto Protocol are required to submit additional information to enable
the assessment of their compliance with their commitments under the Kyoto Protocol.

National greenhouse gas inventories

Developed country Parties are required to submit information on their national GHG inventories annually,
following the methodologies developed by the IPCC. The developed country Parties that are also Parties to the
Kyoto Protocol have additional reporting obligations. These obligations include the requirement to submit
supplementary information such as information on accounting units (in the Standard Electronic Format format) and
information on LULUCF activities under Articles 3.3, and 3.4, of the Kyoto Protocol. They are also required
submit other "ad-hoc" reports such as initial reports, demonstrable progress reports, and true-up
period reports.

Biennial reports

The COP, by decision 1/CP.16, decided that developed country Parties should enhance the reporting in their
national communications and submit biennial reports. The reporting requirements of biennial reports by developed
country Parties are defined in annex I to decision 2/CP.17.

The first biennial reports will be submitted by 1 January 2014 and the second and subsequent biennial reports two
years thereafter. When full national communications are submitted, developed country Parties can submit their
biennial reports either as an annex to the national communication or as a separate report.

National communications

Developing country Parties are also required to prepare and submit national communications, on the basis of the
guidelines contained in the annex to decision 17/CP.8. As agreed by decision 1/CP.16, developing country Parties
should submit national communications every four years.

Typically, their national communications include information on: national circumstances and institutional
arrangements; national GHG inventories; programmes containing measures to facilitate adequate adaptation to
climate change; programmes containing measures to mitigate climate change; transfer of technologies; research and
systematic observation; education, training and public awareness; capacity-building; information and networking;
and constraints and gaps, and related financial, technical and capacity needs.

National greenhouse gas inventories

Developing country Parties submit information on their GHG inventories, capturing a key summary of their GHG
emissions by sources and removals by sinks, as a part of their national communications. Information on national
GHG inventories also needs to be included in their biennial update reports (BURs).

The national GHG inventories are prepared primarily using the Revised 1996 IPCC Guidelines for National
Greenhouse Gas Inventories, the IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas
Inventories and the IPCC Good Practice Guidance for Land Use, Land-Use Change and Forestry.

Biennial update reports

The COP, by decision 1/CP.16, decided that developing country Parties should, consistent with their capabilities
and the level of support provided for reporting, submit BURs, on the basis of guidelines contained in decision
2/CP.17, annex III.

BURs contain updates of national GHG inventories, including a national inventory report and information on
mitigation actions, needs and support received. COP 17 decided that developing country Parties should submit
their first BURs by December 2014 and subsequent ones every two years thereafter. The LDCs and small island
developing States may submit BURs at their discretion.

REDD-Plus

As a basis for the estimation of anthropogenic forest-related GHG emissions, in decision 4/CP.15 the COP
requested developing country Parties implementing REDD-plus activities to use the most recent IPCC guidance and
guidelines, as adopted or encouraged by the COP, as appropriate. In decision 1/CP.16 the COP requested such
Parties to develop national forest monitoring systems. Safeguards were also established by that decision and the
COP requested developing country Parties to develop a system for providing information on how such safeguards are
being addressed and respected. Further guidance is provided in decision 12/CP.17, including an invitation to
developing country Parties to submit proposed forest reference emission levels and/or forest reference levels.
Further modalities for measurement, reporting and verification of REDD-plus are under development..

Consultative Group of Experts on National Communications from Parties not included in Annex I to the Convention

The CGE was established by decision 8/CP.5 to provide technical support and advice to non-Annex I Parties with a
view to improving the process of preparation of national communications from non-Annex I Parties.

The term of the current CGE, reconstituted in 2009 for a period of three years from 2010 to 2012, was extended
for a term of one year at COP 18 by decision 18/CP.18. The CGE agreed to focus the technical assistance to
non-Annex I Parties in 2013 on the preparation of BURs.

The review of the term and mandate of the CGE and the need for the continuation of the group beyond 2013 is being
considered by the SBI with a view of recommending a draft decision to COP 19.

Compilation and synthesis, and in-depth review of national communications

The secretariat prepares compilation and synthesis reports on the national communications of Annex I Parties,
which are considered by the SBI and the COP as the basis for discussing the implementation of the Convention by
Annex I Parties.

National communications are reviewed, within one to two years of the submission due date, by international expert
review teams, following procedures and mandates contained in relevant decisions. The purpose is to provide a
technical assessment of the implementation of the Convention and its Kyoto Protocol, and to ensure that the CMP
has sufficient information to review the implementation of the Convention and its Kyoto Protocol.

Annual inventory review

The annual review of the individual GHG inventories of Annex I Parties became a requirement in 2003 in accordance
with decision 19/CP.8. The annual review ensures adequate consideration of recalculations and emission trends
over time.

The review of GHG inventories comprises three stages: initial check; synthesis and assessment; and individual
review. As a final product, a review report is published on the UNFCCC web site. Usually the reports contain
recommendations for improvements, which are followed up during the next year's review.

The review process for developed country Parties that are also Parties to the Kyoto Protocol and have QELRCs
under the Kyoto Protocol has a number of additional elements.

International assessment and review

The Cancun Agreements established a new process, namely international assessment and review (IAR), under the SBI
for developed country Parties, which aims to promote the comparability of their efforts. The modalities and
procedures for IAR were adopted at COP 17 by decision 2/CP.17, annex II, and will be revised no later than in
2016.

IAR will commence two months after the submission of the first biennial reports. It will be conducted by the SBI
in two steps: a technical review of the biennial reports and; a multilateral assessment of developed country
Parties' progress on emission reductions and removals.

In order to ensure an effective IAR process, the review guidelines for national communications, biennial reports
and GHG inventories are being developed and revised under the SBSTA for adoption at COP 19 and COP 20.

Expert Review Teams

The reports of developed country Parties are reviewed by expert review teams (ERTs). ERT members are selected by
the secretariat from experts nominated to the UNFCCC roster of experts. Two lead reviewers guide the work of the
teams. All lead reviewers come together in an annual meeting and report to the SBSTA. The secretariat has
initiated a training process to ensure that there is a sufficient number of experts to implement the review
process.

Compliance mechanism

The Kyoto Protocol compliance mechanism is designed to strengthen the Kyoto Protocol's environmental
integrity, support the credibility of the carbon market and ensure the transparency of Parties' accounting.
Its objective is to facilitate, promote and enforce compliance with the commitments under the Kyoto Protocol. It
is among the most comprehensive and rigorous systems of compliance for a multilateral environmental agreement.

The Compliance Committee implements the procedures and mechanisms relating to compliance under the Kyoto
Protocol, designed to facilitate, promote and enforce compliance with commitments under the Kyoto Protocol.

The Compliance Committee was established by decision 27/CMP.1. It has two branches (the enforcement and
facilitative branches) and a plenary. Each branch is composed of 10 members and has a chairperson and
vice-chairperson.

The plenary of the Compliance Committee meets at least twice a year and the branches meet as often as required.
The Compliance Committee reports annually to the CMP. Each branch reports to the plenary on its work. The CMP can
consider an appeal against a decision of the enforcement branch relating to Article 3, paragraph 1, of the Kyoto
Protocol if the Party concerned believes it has been denied due process.

In terms of linkages, the JISC is encouraged to collaborate with the Compliance Committee, in particular with
regard to the list of Parties that meet the eligibility requirements for participation in market-based mechanisms
and those that have been suspended by the enforcement branch.

Compilation and synthesis of national communications

The compilation and synthesis of national communications from developing country Parties is a process to compile
and synthesize the information reported by such Parties on their actions, problems encountered in using the
guidelines for the preparation of initial national communications, and other issues, with a view to enhancing the
comparability and focus of their national communications.

To date, six rounds of compilation and synthesis have been undertaken. The reports on the compilation and
synthesis of national communications are considered by Parties under the SBI.

International consultation and analysis

The international consultation and analysis (ICA) of BURs from developing country Parties was established by
decision 1/CP.16. The process, under the SBI, aims to increase the transparency of mitigation actions and their
effects, through analysis by technical experts in consultation with the Party concerned and through a
facilitative sharing of views, and will result in a summary report.

The modalities and guidelines for ICA are contained in decision 2/CP.17, and will be revised no later than in
2017. The first round of ICA will commence within six months of the submission of the first round of BURs.

A team of technical experts will conduct the technical analysis of the BURs under the ICA process. The
composition, modalities and procedures of the team of technical experts are being developed by the SBI with a
view to forwarding them for adoption by COP 19.

COP 16 also decided that domestically supported mitigation actions will be measured, reported, and verified
domestically in accordance with guidelines to be developed under the Convention. Such guidelines are being
developed by the SBSTA with a view to forwarding them for adoption by COP 19.

Biennial assessment and overview of climate finance flows

One of the functions of the SCF is to assist the COP in relation to the financial mechanism in terms of
measurement, reporting and verification of support. A key activity is the preparation of a biennial assessment
and overview of climate finance flows.

The process for the biennial assessments and overview of climate finance flows was established by decision
2/CP.17, with the COP specifying the scope and sources of information for the process, and operationalized in the
context of the work programme of the SCF, which was approved by COP 18.

The work is conducted by the SCF and will entail recommendations to be included in its annual report to the COP.
The SCF has developed the scope and objective of and a tentative timeline for the first biennial assessment and
will report thereon in its annual report to COP 19. The first biennial assessment is expected to be presented at
COP 20 and the second biennial assessment is expected to be initiated in 2015.

The SCF has established a dedicated working group for the biennial assessments and overview of climate finance
flows, which will also work inter-sessionally and serve as liaison between the SCF and external stakeholders,
with whom the SCF engages in extensive outreach activities on this matter.

With regard to methodologies to measure and track climate finance, developed country Parties were invited by COP
18 to submit information on appropriate methodologies and systems by May 2014.

This aspect of the work of the SCF is strongly linked with the work of other bodies, most notably the SBI and the
SBSTA. Furthermore, close linkages to, for example, the CGE, but also to the NAMA registry, will be important.
Close cooperation and liaison with all stakeholders involved will be essential for the work of the SCF on the
biennial assessments and overview of climate finance flows.